Turbulent Times for Pak: Malaysia Impounds Its Aircraft Again Over $4-Million Dues | Exclusive

Malaysia once again impounded a Pakistan International Airlines (PIA) Boeing 777 aircraft with passengers on board over payment of dues amounting to $4 million, following a Malaysian court order. Top sources in the Pakistan government, however, tried to downplay the issue, saying “dues are regular after a lease process”.

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The aircraft was acquired by the PIA on lease from Malaysia. The plane was stopped at the Kuala Lumpur airport.

The plane was released after the Ministry of Foreign Affairs intervened and assured the Malaysian authorities of payment of dues.

WHAT HAPPENED IN 2021?

A PIA aircraft with 170 passengers on board was held back at the Kuala Lumpur Airport on January 15, 2021, on the orders of a local Malaysian court over a legal dispute in a UK court between PIA and another party.

The litigation was initiated due to non-payment. The leasing company had filed a case against PIA at the London High Court in October 2020 over its failure to pay leasing fee worth around $14 million, which had been pending for six months.

As soon as the company received the information of the PIA flight 895’s scheduled landing in Malaysia, it appealed to a local court to seize the aircraft, as per the international civil aviation leasing laws, sources added.

On January 26, 2021, the PIA informed the London High Court that it paid the amount to Peregrine Aviation Charlie Ltd in the case pertaining to two jets leased to it by the Dublin-based AerCap.

​Following the incident, alternative arrangements for passengers’ travel were made.